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Air Products and Chemicals
(NYSE:APD)
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Rating:60Neutral
Price Target:
$309.00
▲(3.74% Upside)
Action:Reiterated
Date:07/30/26
APD scores as a balanced/neutral setup. The strongest support comes from the earnings call (raised FY2026 guidance, margin expansion, and a large backlog) and improved TTM cash generation. Offsetting these are volatile profitability and higher leverage in the financials, a premium valuation (P/E ~31), and a notable negative corporate event tied to project exits and a large impairment-related charge. Technically, longer-term trend support is present, but near-term price is below the 20-day average.
Positive Factors
Large contracted backlog and semiconductor wins
A $9B backlog plus expected $1.5–$2.0B additions and multi‑phase semiconductor agreements provide durable, contract‑driven revenue visibility. Large on‑site and pipeline projects lock in long‑term cash flows, reduce spot exposure, and underpin multi‑year utilization of assets and returns.
Negative Factors
Rising leverage and higher debt load
Materially higher leverage reduces financial flexibility and increases sensitivity to earnings and interest rate swings. With elevated debt metrics, the company faces tighter constraints on future investment choices, greater refinancing risk, and less cushion for cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Large contracted backlog and semiconductor wins
A $9B backlog plus expected $1.5–$2.0B additions and multi‑phase semiconductor agreements provide durable, contract‑driven revenue visibility. Large on‑site and pipeline projects lock in long‑term cash flows, reduce spot exposure, and underpin multi‑year utilization of assets and returns.
Read all positive factors
Air Products and Chemicals Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAir Products and Chemicals (APD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.03B
Dividend Yield2.33%
Average Volume (3M)1.38M
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth4.51%
EPS Growth-103.05%
CountryUS
Employees21,194
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.21
Shares Outstanding222,685,530
10 Day Avg. Volume1,029,259
30 Day Avg. Volume1,378,394
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)4.04
Price to Sales (P/S)5.05
P/FCF Ratio-16.14
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$341.29Price Target Upside14.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)13.41
Revenue Forecast (FY)$12.76B
Air Products and Chemicals Business Overview & Revenue Model
Company Description
Operating globally, Air Products and Chemicals, Inc. (APD) is a prominent supplier of industrial gases, specialized equipment, and associated services. The company's diverse product range includes atmospheric gases such as oxygen, nitrogen, and ar...
How the Company Makes Money
APD primarily makes money by producing industrial gases and delivering them to customers under a few recurring, contract-driven models. (1) On-site supply and pipeline: For large customers (e.g., refineries, chemical plants, large manufacturers), ...
Air Products and Chemicals Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixture of clear operational and financial strengths — solid top-line growth, improving margins, raised FY guidance, strong Asia and Americas performance, healthy backlog focused on electronics, positive free cash flow and shareholder returns — alongside significant strategic and one-time negatives, most notably a large $2.9 billion pretax charge for project exits and ongoing uncertainties around first-of-a-kind NGHC commissioning and pricing exposure. Management emphasized disciplined capital allocation, progress on project optimization and productive commercial steps (e.g., Yara agreement) but acknowledged macro and regional risks (Europe softness, helium market dynamics). Overall, the quarter reflects resilient core operations and a constructive outlook tempered by meaningful project-level write-offs and execution/commissioning risk.Positive Updates
Operating Income and Margin Expansion
Operating income increased 9% year-over-year in Q3 FY2026 and operating margin improved to 25.6%, up more than 100 basis points versus prior year, driven by volume and price improvements despite higher costs.
Negative Updates
Large Pretax Charge for Project Exits
Recorded a pretax charge of $2.9 billion in the quarter associated with exiting the Louisiana project, Casa Grande (AZ) and other smaller-scale clean energy distribution projects — a material one-time negative item.
Read all updates
Q3-2026 Updates
Positive
Negative
Operating Income and Margin Expansion
Operating income increased 9% year-over-year in Q3 FY2026 and operating margin improved to 25.6%, up more than 100 basis points versus prior year, driven by volume and price improvements despite higher costs.
Read all positive updates
Company Guidance
Air Products raised its full‑year fiscal 2026 earnings outlook to imply 11%–12% EPS growth, with a fiscal‑year EPS range of $13.39–$13.49 and Q4 EPS guidance of $3.55–$3.65 (up 5%–8% YoY); FY capex is now expected to be about $3.5 billion, with a target of roughly $1.5 billion per year for traditional industrial gas projects and an expected longer‑run total CapEx of ~$2.0–$2.5 billion/year after underperforming projects are brought onstream (near‑term CapEx reduced by ~$500 million for timing/cancellations). The company is free‑cash‑flow positive YTD, has returned $1.2 billion in dividends, carries a net debt/EBITDA of 2.1x (proportionate NGHC), and continues to target an A/A2 rating; management also recorded a $2.9 billion pretax charge for canceled projects but expects no material financial impact from NGHC in FY27. Supporting the guidance were Q3 metrics: EPS $3.47 (+12% YoY), operating income +9% YoY, operating margin 25.6% (up >100 bps), return on capital 11.7% (up 60 bps), a helium headwind of ~2% (better than prior guidance), and YTD EPS growth of ~14%.Air Products and Chemicals Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.60B | 12.04B | 12.10B | 12.60B | 12.70B | 10.32B |
| Gross Profit | 4.04B | 3.78B | 3.93B | 3.77B | 3.36B | 3.14B |
| EBITDA | 1.30B | 1.34B | 6.49B | 4.42B | 4.22B | 3.97B |
| Net Income | -47.30M | -394.50M | 3.83B | 2.30B | 2.26B | 2.10B |
Balance Sheet | ||||||
| Total Assets | 40.45B | 41.06B | 39.57B | 32.00B | 27.19B | 26.86B |
| Cash, Cash Equivalents and Short-Term Investments | 980.50M | 1.86B | 2.98B | 1.95B | 3.30B | 5.80B |
| Total Debt | 18.16B | 18.41B | 15.01B | 11.03B | 8.33B | 8.22B |
| Total Liabilities | 23.85B | 23.71B | 20.90B | 16.34B | 13.49B | 12.77B |
| Stockholders Equity | 13.88B | 15.02B | 17.04B | 14.31B | 13.14B | 13.54B |
Cash Flow | ||||||
| Free Cash Flow | 2.06B | -3.77B | -3.15B | -1.42B | 303.70M | 877.70M |
| Operating Cash Flow | 4.57B | 3.26B | 3.65B | 3.21B | 3.23B | 3.34B |
| Investing Cash Flow | -4.80B | -6.58B | -4.92B | -5.68B | -3.86B | -2.73B |
| Financing Cash Flow | -1.12B | 2.21B | 2.62B | 1.37B | -1.00B | -1.56B |
Air Products and Chemicals Technical Analysis
Positive
297.87
Price Trends
292.31
Positive
292.37
Positive
275.87
Positive
Market Momentum
3.68
Negative
61.91
Neutral
77.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Positive. The current price of 297.87 is below the 20-day moving average (MA) of 298.96, above the 50-day MA of 292.31, and above the 200-day MA of 275.87, indicating a bullish trend. The MACD of 3.68 indicates Negative momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 77.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APD.
Air Products and Chemicals Risk Analysis
Air Products and Chemicals disclosed 19 risk factors in its most recent earnings report. Air Products and Chemicals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Air Products and Chemicals Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $77.44B | 36.81 | 21.41% | 1.06% | 7.11% | -0.48% | |
73 Outperform | $87.77B | 32.79 | 62.12% | 1.00% | 5.76% | 7.42% | |
71 Outperform | $220.44B | 31.02 | 18.86% | 1.21% | 6.63% | 9.97% | |
69 Neutral | $19.46B | 317.96 | 0.34% | 1.68% | -34.44% | ― | |
62 Neutral | $25.50B | 16.25 | 30.22% | 2.45% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $68.03B | -1,485.43 | -0.32% | 2.42% | 4.51% | -103.05% |
* Basic Materials Sector Average
APD
Air Products and Chemicals
308.97
28.31
10.09%
ECL
Ecolab
276.11
-1.02
-0.37%
PPG
PPG Industries
114.11
5.97
5.52%
SHW
Sherwin-Williams Company
359.10
2.80
0.79%
DD
DuPont de Nemours
146.26
56.09
62.21%
LIN
Linde
482.74
10.59
2.24%
Air Products and Chemicals Corporate Events
Business Operations and StrategyFinancial Disclosures
Air Products Exits Key Clean Energy Projects Amid Impairments
Negative
Jun 30, 2026
On June 26, 2026, Air Products decided to exit its planned Louisiana Clean Energy Complex for low-carbon hydrogen and ammonia, a green hydrogen facility in Casa Grande, Arizona, and other smaller clean energy distribution projects after determinin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.